When emergency hits. Will you sell your bitcoin or borrow and keep holding?

[HelliumZ]

Hello everybody, I have one big question to ask that I think many people face which is, we always hear people say here and on other platforms ‘you should never sell your bitcoin’ and HODL it forever but I don’t think it is applicable in real life because god forbid an emergency can come up with you like one’s child can get critically sick and the hospital bills are too high or you lose your main job and does not know what and where next to go for a rescue. At that kind of moment, what would you really do? Are you going to sell some part of your bitcoin to solve the problem or are you going to borrow from the bank or friends and keep your bitcoin because the price will go up later?

Haha, that's a stupid question, especially why would you hold Bitcoin, especially if you hold it for the safety of your life. In that case, if you can't guarantee your life with Bitcoin, then what good will Bitcoin do you? Suppose you died holding Bitcoin, then after your death Bitcoin increased many times, but in that case you are no longer alive on earth, then what is the benefit of holding Bitcoin?
Then you understand whether the Bitcoin you hold is more valuable than your life or your life is more valuable to you.

[finaleshot2016]

Since we're having a digital gold narrative for bitcoin then there's nothing wrong if we can use it when emergency comes. Imagine if the gold can be used and sold easily when the time comes then there's people will definitely do it when the time comes. Of course, if we don't need to sell it and we have specific emergency funds then don't sell your bitcoin and just HODL because we knew how big the potential of BTC. So right now, if you really need money, then it's fine to sell as long as it'll become useful someday, it's the purpose of BTC, it could be for digital transactions, could be for p2p payments, decentralized money, and of course investment asset. It'll be up to you on whatever you'll use crypto, your BTC, your decision.

[NurseHub]

It's true that we don't pray for health issues but when it comes to health all type of decision can be taken but then why do I have bitcoin and want to borrow from the bank? of course I can sell but if I make every rational thinking and I figure out that I can pay off the debt and my bitcoin will bring more profit while I pay the debt, I can't sell of course. there are ways to handle issues, but then there is also something called emergency savings that can help you navigate all the unforeseen circumstances in life. so you don't also have to sell or borrow at that when you may have issues regarding health.

[EL MOHA]

I don't need to sell Bitcoin when emergency comes, I have fiat for this reason, I plan to hold as many Bitcoin as I can for a very long time and that's why I even feel comfortable with spending some part of my Bitcoin, this is about me and I am not advising anyone to walk the same way as me.

The thing is we are seriously mistaking all this emergency funds savings because to me I think there are emergencies where your emergency funds cannot actually take you out from it and you might be lucky to have extra funds elsewhere which you can actually use for the emergency. We usually do not hope that anyone is faced with such emergency but your outburst of not going to touch your bitcoin during emergency is why I pointed this out.

This kind of threads is the reason why questions like ‘how much can one save for emergency funds before accumulating bitcoin’ arises. It is usually on this same scenery where u usually advice one to simply Just have substantial amount set aside as the emergency funds and then move swiftly to accumulating bitcoin because let’s be sincere there is no way one can fathom how much will be needed in future for emergency we just hope we don’t have reason for such huge emergency that requires large funds

[Natalim]

With the given problem scenario, I will not hesitate to sell my bitcoin. Bitcoin is just a material thing, it can always be replaced any time if you want. But if the health of the children or any member in the family will already be compromised, I won't think anymore whether to hold or sell my bitcoin, or just borrow money, but I will choose the fastest option which is to sell a fraction of my bitcoin and just buy back again when there is enough capital again, but the rest of the coins I will definitely keep them hodling, at least I know I still have future profits entering in my pocket soon.

[Ultegra134]

Haha, that's a stupid question, especially why would you hold Bitcoin, especially if you hold it for the safety of your life. In that case, if you can't guarantee your life with Bitcoin, then what good will Bitcoin do you? Suppose you died holding Bitcoin, then after your death Bitcoin increased many times, but in that case you are no longer alive on earth, then what is the benefit of holding Bitcoin?
Then you understand whether the Bitcoin you hold is more valuable than your life or your life is more valuable to you.

Well not exactly, if there are no other funds available, then it's out of the question, but that's already a problematic scenario, right? You always have to have savings in fiat currencies as well, in this scenario you're mentioning, your savings will basically be a volatile asset like Bitcoin, which is wrong. I personally hold Bitcoin but also have savings that are enough for me to go jobless for quite a few months, if something unexpected was to occur, I wouldn't have to escort in using my Bitcoin.

[Hypnosis00]

I don't think this kind of situation still requires deep analysis, because as far as I know, if you care for your child's health and safety, you won't be troubling your mind anymore which is best to do, selling or hodling. You will know instantly what to do, that is selling your bitcoin directly regardless of its price, because the health of your child will always be the top priority.

This is also a reminder not to instantly invest without securing your emergency funds first. That is very basic, yet a lot of investors overlook its importance.

[Dogedegen]

I think you should be more realistic. If you think that you will never touch Bitcoin even in a real crisis, then the idea that you will never touch Bitcoin is not discipline at all, it is your blindness. Honestly, critical situations never bother your investment philosophy. When life hits you hard or someone in your family is at risk or your income stops for months, the idea of "I will not touch my Bitcoin" will not last even 5 minutes. Because you are a human being, not a robot of some artificial system that life's worst situations will not affect you in any way.

No, I am not touching my Bitcoin. I have discipline with financial matters, and you are a product of the capitalism and the consumption machine. You are trying to shift away the blame from your own failures. A well designed emergency fund can last months or even years. There is no emergency that can drain it instantly, that is exaggerated thing like considering whether you will be hit by an asteroid on your way to work or something. For the most extreme of medical cases you would have medical insurance, for the most extreme natural disasters you would live in a way that would conserve the fund as much as possible. So what is left that could cause a complete emptying of my fund in a short amount of time? Please enlighten me.

Real emergencies can break your well-laid financial plans. You can save for years, yet one bad day or week can destroy this entire financial system. A major fraud can burn your entire emergency fund like it was nothing.  I would never want something like this to happen to you but God forbid if something like this happens to you then you will not talk about long term investments but then you will rush for any liquid asset and that could be Bitcoin. And one of the most terrible things in our life is that when we need money the most, if we have Bitcoin, its price can go down. Because danger always comes together and that is why it is a serious situation.

No that is also not true. Nobody can do a major fraud on me like that.   Again you are shifting the responsibility for your own decisions and failures to external factors. Who decided that you should distribute your finances the way that you did, and save how you did it? You did! This means that if the entire world is on fire and it affects primarily your finances then it is your responsibility!

I will not think twice to sell Bitcoin for my son illness if there is no way to get funds from other places. Let's be honest for once. Some people that are given all sort of advice to borrow and don't sell don't even have a single sats and are the first to rush when they get paid in Bitcoin. There is nothing that comes close to how important a life is to you and your family, there is plenty of opportunities to get into the market if you sell to save a life.

If you don't have insurance to pay for this and decide to sell Bitcoin, you are making two mistakes at the same time.

If you lose someone dearly to you because you refuse to sell your Bitcoin, you will regret it one day anytime you look at the Bitcoin, there is nothing valuable like good health. Even as an individual, as you are prioritizing Bitcoin, try and prioritize your health, there is only 1 life you can only live once. If there is need for your own health, sell that Bitcoin and take care of your health, Bitcoin will remain and wait for you buy your life might be cut short if you don't do anything about it.

The medical industry often does not give health, you pay for expensive treatments that's it. Good cures are cheap for anything that isn't extremely rare.

[Orpichukwu]

Why borrow to solve a problem when you have funds somewhere stacked in Bitcoin which could just be converted and used to solve my problem? There was a time when I had this mindset of 'I would rather take a loan than sell off what I hold', but that depends on personality and how serious the situation is, together with how you plan to pay back the loan. If it's interest-free, the situation at hand will determine which decision the person will have to take. Even if it's selling off the Bitcoin, that won't be a bad option as long as it's put to good use.

[purple_sparkles]

I generally don’t like living on credit, not even using installment plans. I prefer to live within my means. However, if a situation comes up where it’s more rational and beneficial to take a loan with good conditions instead of selling my bitcoin, I would definitely take advantage of that opportunity.

[Lamtel]

Hello everybody, I have one big question to ask that I think many people face which is, we always hear people say here and on other platforms ‘you should never sell your bitcoin’ and HODL it forever but I don’t think it is applicable in real life because god forbid an emergency can come up with you like one’s child can get critically sick and the hospital bills are too high or you lose your main job and does not know what and where next to go for a rescue. At that kind of moment, what would you really do? Are you going to sell some part of your bitcoin to solve the problem or are you going to borrow from the bank or friends and keep your bitcoin because the price will go up later?

The question here is a very sensitive one and the answers depends on how we manage our emotions. In my opinion, the first thing I will do is to control my emotions and reactions towards the situation and seek help from families and friends.

In a condition where I was unable to raise the money needed for the treatment, then I can now proceed in selling my Bitcoin. But before selling, two factors have to be considered:
Firstly, the market trends(if the market is favourable or not)
Secondly, in a situation where the market is not favourable, if am incurring huge loss.

My child's life is more important to me than stored wealth, selling my Bitcoin can help in saving life and avoiding future debt and bankruptcy because going to the bank soliciting for loans is not a better option for me, the interest alone is a nightmare and it can even lead to mental instability where by the interest rate is very high.

[Cgrexp]

New investors think that they need to learn Bitcoin in depth first, but the main priority for every investor should be to understand their own personal financial situation and how they will determine their cash flow, backup funds, and initial investment position size. It is wise to start with small positions and gradually build confidence and investment. This is why DCA strategies and proper financial management are essential to ensure that you can continue investing regularly.

[Joy- maker]

Hello everybody, I have one big question to ask that I think many people face which is, we always hear people say here and on other platforms ‘you should never sell your bitcoin’ and HODL it forever but I don’t think it is applicable in real life because god forbid an emergency can come up with you like one’s child can get critically sick and the hospital bills are too high or you lose your main job and does not know what and where next to go for a rescue. At that kind of moment, what would you really do? Are you going to sell some part of your bitcoin to solve the problem or are you going to borrow from the bank or friends and keep your bitcoin because the price will go up later?

Normally unforeseen circumstances must happen in our lives wether we like it or not, that is why it is advisable to set up emergency fund and back up fund, because those two fund's we help us and sort us out when emergency arises. So as a Bitcoin investor you must ensure to always allocate some portion of your leftover money ( discretionary income) to your emergency fund and back fund, don't invest all your leftover money in Bitcoin, because if you invest all your leftover money in Bitcoin without building your emergency fund and back up, trust me you will be forced to sell your Bitcoin holding and attend to those emergencies before you.

And to answer your question OP, nobody is advising anybody here to hold their Bitcoin for ever, the only advice I see people here giving to others is to hold for long term 5 to 10 years or more, and not to hold for short term. Beside nobody on this planet Earth is going to hold their Bitcoin forever, those who have held Bitcoin for years now is going to sell one day, to create opportunities for new investors like you and me. So if your child is critically sick and you lost your main source of income, and  no means of paying your child hospital bills and you are holding Bitcoin, you are free to sell some portion of your Bitcoin and settle your child hospital bills, because it is the matter of life and death. Allowing your child to die just because you want to hold your Bitcoin long term is not smartness rather it's foolishness.

[SmartCharpa]

Investing in Bitcoin is not a do or die decision, if you’re in a situation where you have no other choice than to sell your Bitcoin, no one can stop you from selling what belongs to you. It is not advisable to sell that way, but as an investor, you should have a good strategy from the beginning. If you invest and have no other source of income, you will have to sell your Bitcoin, if you believe selling your Bitcoin is the only way out to solve the problems, go ahead and sell.

But, as an investor, why invest from the first place if you know you won’t be able to save an emergency fund along the way? Some investors sell a part of their holdings to solve problems, and why do you sound like holding a bitcoin is more important than saving a life? No one advised you to hold forever, but for a long term in order to make a big profit. Nothing is more precious than life.

[bhadz]

New investors think that they need to learn Bitcoin in depth first, but the main priority for every investor should be to understand their own personal financial situation and how they will determine their cash flow, backup funds, and initial investment position size. It is wise to start with small positions and gradually build confidence and investment. This is why DCA strategies and proper financial management are essential to ensure that you can continue investing regularly.

DCA + having savings and back funds is the better thing to do. What I see with other bitcoin investors is that's the only savings that they have. It's not that bad at all but as the question hits really bad when some emergencies happen and they don't have any source of funds where to get the budget for that matter. It's always been the bitcoin that they held for so many years will be spent for that. That's not a bad purpose and way of spending it but getting into accumulation again will be another problem for that person if he's got no other source to do the DCA again.

[Rabata]

You have raised a good question which newbies should definitely know. It is not like holding Bitcoin forever. If you can hold it for a long term then you can get multiple times than the price at which you bought Bitcoin. It is not possible for everyone to invest huge amounts. If they invest a small amount from their discretionary income in DCA regularly and along with the investment if he creates an emergency fund then there is no obstacle for him to invest in Bitcoin. He can use his emergency fund for any need.

[Dogedegen]

Why borrow to solve a problem when you have funds somewhere stacked in Bitcoin which could just be converted and used to solve my problem?

This is not a real argument. Just turn it upside down. Why sell when you can borrow to solve a problem? There is no argument at all to justify one way or the other way.

I generally don’t like living on credit, not even using installment plans. I prefer to live within my means. However, if a situation comes up where it’s more rational and beneficial to take a loan with good conditions instead of selling my bitcoin, I would definitely take advantage of that opportunity.

That is usually a sign of the less wealthy people. Rich people take up debt all the time, of course they do it where it makes sense or where they can derive benefit.

DCA + having savings and back funds is the better thing to do. What I see with other bitcoin investors is that's the only savings that they have. It's not that bad at all but as the question hits really bad when some emergencies happen and they don't have any source of funds where to get the budget for that matter. It's always been the bitcoin that they held for so many years will be spent for that. That's not a bad purpose and way of spending it but getting into accumulation again will be another problem for that person if he's got no other source to do the DCA again.

The Bitcoin that people own is neither supposed to be an investment, nor a savings, nor an emergency fund. This is just a sign of financial incompetence. Bitcoin is supposed to provide a way out of the traditional slavery financial system. As such you can not use it for events, it should always be kept as the last resort. Without it, the average person has nothing. This problem is not a Bitcoin one though. If you look at the data most people have no emergency fund at all or one that is very tiny. The problem is not the earnings either, it is the spending side and the financial knowledge and discipline. If you live life wrong you can live paycheck to paycheck even if you earn $100k per month or more.  So the issue is rarely the income, and even if the income is a problem often people are not doing anything significant to improve it.

[Smartvirus]

If you lose your main job, you can always do side jobs like work as an Uber/taxi driver, work in food delivery, parcel delivery or in the worst case, work on construction. There is always a job to do and if you are not lazy, you'll always be able to feed yourself and won't spend your savings. I've noticed that many people want to only work good jobs and are willing to wait for months and years for such job while the time they waste gives them zero income.

Even these Uber/Taxi jobs are good jobs. It’s just how it’s being associated and the hazards involved in the job, where you have to carry a random stranger in your vehicle and you can’t tell what security risk they might pose to you.

Other than that, the Uber job provides a decent income for just the right folks who can put themselves through to do the job and give excellent rides. I know people who do this job and are doing okay, taking up other investments from it.

[LogitechMouse]

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Are you going to sell some part of your bitcoin to solve the problem or are you going to borrow from the bank or friends and keep your bitcoin because the price will go up later?

This is where your EMERGENCY FUNDS come in handy, and that's why we always say that we need to have emergency funds because scenarios like this can happen anytime, and for most of the time, we aren't ready for it.

I'll try to use my emergency funds first to cover the expenses whether it's an accident or if I lose my job, but if that isn't enough and I don't have any way of getting those funds then I'll be forced to sell my Bitcoins. I can just by Bitcoins if everything is fine on my part. I mean Bitcoin will be here to stay. If I lose my job, I can just find any other job out there where I can just those income to buy some Bitcoins. If I'm lucky, I might find a job close to our area.

Borrowing instead of selling? This might be another option for me, but it will all depend on my current situation, and the current situation of the market.

[Dogedegen]

Even these Uber/Taxi jobs are good jobs. It’s just how it’s being associated and the hazards involved in the job, where you have to carry a random stranger in your vehicle and you can’t tell what security risk they might pose to you.

The danger of Uber is no longer a reality today. It is probably negligible on the same degree of being attacked by a random stranger in any public space. A lot of data is gathered by Uber of its passengers, and in some places even KYC is required these days I think. Therefore attacking anyone is very risky as you would be caught instantly. If you hear a few stories on the internet that is because it is so rare that it becomes a story, like an airplane crash. There are millions and millions of Uber rides per day and nothing happens in almost all of them.

Other than that, the Uber job provides a decent income for just the right folks who can put themselves through to do the job and give excellent rides. I know people who do this job and are doing okay, taking up other investments from it.

Where is this true, in which countries? From my observation it is harder to earn anything more than survival wage in most countries from Uber. Uber takes a very big cut of like 30% and on top of that you have income taxes on the money you earned there so suddenly those lucrative looking rides look pretty poor.

I'll try to use my emergency funds first to cover the expenses whether it's an accident or if I lose my job, but if that isn't enough and I don't have any way of getting those funds then I'll be forced to sell my Bitcoins. I can just by Bitcoins if everything is fine on my part. I mean Bitcoin will be here to stay. If I lose my job, I can just find any other job out there where I can just those income to buy some Bitcoins. If I'm lucky, I might find a job close to our area.

There is a lot of misunderstanding and subjectivity when it comes to emergency funds and that is why people end up in situations like these. They waste a lot of their money on useless and dangerous goods, but they prepare for hard times. Then they double down on their mistakes by selling valuable things like Bitcoin instead of exploring other options. For the case of an emergency fund first the biggest group of people are those who don't have any, or those that have savings and think that is an emergency fund. This is a mistake of course because when savings are used for a big purchase an emergency could happen right then and you are going to be in a problem.

The other people are those that build up a fund and keep it at some static number which is often too low for anything really problematic, while they continue to waste money on all kinds of things. An emergency funds must grow all the time, there is no reason for it not to. Insurances must also be had. Then you will have a lot of time which you can use to recover your situation and avoid selling Bitcoin.